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Should you buy a home or rent one?

By Edited Jun 3, 2015 0 1

buy a home
When deciding on a place to live, many people find themselves struggling with whether or not they should rent or buy.

Each choice has its own benefits and pitfalls. In order to make the decision to rent or buy, you need to evaluate your own circumstance and weigh the benefits of each in order to determine what makes the most sense for your situation.

When you decide to buy a home, you are making a large financial commitment. Owning your own home can be very rewarding personally and financially. Many people buy a home and spend time making improvements and often times are able to sell their home for a profit. Timing is an essential part of making money when selling a home. If you buy your house when the housing market is at a peak and then need to sell when there is a decline in home sales, you may find that you have to take a loss on the sale. Additionally, selling a home requires that you pay a licensed real estate agent to handle the sale for you. To save money many people try to sell their home on their own. Although this will save the seller a lot of money, there are many hassles involved with selling a home yourself including having to be at the property to show potential buyers the home. Real estate can be very complicated as well, and for a novice, the task of selling a home can be overwhelming.

When you own your home, you also have a lot of expenses that you must finance. Repairs are the homeowner's responsibility. Repairs and projects can be inexpensive such as replacing a door knob or fixing a squeaky hinge. Occasionally, home owners have a repair that is quite expensive. Imagine coming home to a frozen pipe that has to be replaced or replacing a furnace in the middle of a cold winter. If you decide to buy, you want to make sure you have some money saved for unexpected repairs.

Many people decide not to buy a home for many reasons. Some do not want to have the responsibility of paying for repairs. If you're renting your home and something breaks, it is your landlord's responsibility to repair the issue. Additionally, renters often get "perks" with their rental such as free water, free trash pick up and they do not have to mow the grass outside their home.

Some people like to rent their home because they do not know how long they will be in an area or city. If you've accepted a job in a new town, you may not be familiar with the location of your office. You may also want to take some time to get to know the city and determine what part of town you would like to be in for a long term stay. You may also be unsure as to how long you will be in this particular city and do not want to buy a home because you may not be able to sell it quickly if your job situation changes. Renting will give you a low commitment housing option for situations like this. If you decide to stay at your job or in this city, you can decide to buy a home when you are comfortable.

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Comments

Feb 21, 2010 2:51am
aguy
There are both financial and non-financial issues to consider.
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